York Water Company Reports 3rd Quarter and Nine Months Earnings and Announces a Water Acquisition
November 03 2016 - 9:30AM
The York Water Company's (NASDAQ:YORW) President, Jeffrey R. Hines,
announced today the Company's financial results for the third
quarter and the first nine months of 2016.
President Hines reported that third quarter 2016
operating revenues of $12,601,000 increased $233,000 and net income
of $3,571,000 increased $51,000 compared to the third quarter of
2015. Earnings per share of $0.27 for the three-month period
decreased $0.01 compared to the same period last year due to an
increase in the number of shares outstanding.
President Hines also reported that operating
revenues for the first nine months of 2016 of $35,699,000 increased
$227,000, due to the addition of nearly 1,000 new customers and
higher service revenues. Net income of $8,904,000 decreased by
$69,000 compared to the first nine months of 2015 despite the
increase in revenue primarily due to higher depreciation expense
and higher income taxes due to reduced maintenance and repair tax
deductions. Other operating expenses were consistent or lower
for the first nine months of 2016 compared to the same period in
2015. Earnings per share for the nine-month period were $0.69
in 2016 and $0.70 in 2015.
During the first nine months of 2016, the
Company invested $8.3 million in construction expenditures for
further upgrades to water treatment facilities and information
technology, as well as various replacements of infrastructure and
other routine items. In addition, the Company invested
$29,000 in the acquisition of water facilities. The Company
estimates it will invest an additional $4 million in 2016,
excluding acquisitions, for expansion and improvements to its
pipes, service lines, water and wastewater treatment facilities, an
additional untreated water pumping station and force main, and
various replacements and upgrades to other infrastructure to ensure
a safe, adequate, and reliable supply of drinking water and to
maintain proper handling and disposal of wastewater for the
Company’s growing customer base.
|
Period Ended September 30 |
|
In 000's (except per share) |
|
Quarter |
Nine Months |
|
|
2016 |
|
|
2015 |
|
|
2016 |
|
|
2015 |
|
Operating Revenues |
$ |
12,601 |
|
$ |
12,368 |
|
$ |
35,699 |
|
$ |
35,472 |
|
Net Income |
$ |
3,571 |
|
$ |
3,520 |
|
$ |
8,904 |
|
$ |
8,973 |
|
Average Number of Common
Shares Outstanding |
|
12,868 |
|
|
12,835 |
|
|
12,847 |
|
|
12,844 |
|
Basic Earnings Per Common
Share |
$ |
0.27 |
|
$ |
0.28 |
|
$ |
0.69 |
|
$ |
0.70 |
|
Dividends Declared Per
Common Share |
$ |
0.1555 |
|
$ |
0.1495 |
|
$ |
0.4665 |
|
$ |
0.4485 |
|
On August 8, 2016, the Company signed an
agreement to purchase the water assets of Stockham’s Village Mobile
Home Park in Adams County, Pennsylvania. Completion of this
acquisition is contingent upon receiving approval from all required
regulatory authorities. The Company expects to begin serving
approximately 80 new customers through an interconnection with its
current distribution system in the first quarter of 2017.
This news release may contain forward-looking
statements regarding the Company’s operational and financial
expectations. These statements are based on currently available
information and are subject to risks, uncertainties, and other
events which could cause the Company’s actual results to be
materially different from the results described in this statement.
The Company undertakes no duty to update any forward-looking
statement.
Contact:
Jeffrey R. Hines, President
jeffh@yorkwater.com
Or
Kathleen M. Miller, Chief Financial Officer
kathym@yorkwater.com
Phone:
717-845-3601
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